Advancing Technology Prompts Major Changes to the Mail Deliv
NEW YORK, Aug. 19, 2020 /PRNewswire/ -- Over the course of the last decade, the courier, express, and parcel (CEP) industry has witnessed high growth rates across the world. The wider spread of technology and the development of internet infrastructure have greatly contributed to the market, and e-commerce services are now a major growth driver of the CEP market, generating significant revenues for the industry. Additionally, the evolution of technology is reshaping the entire supply chain and reinventing the parcel industry as online shopping has led to an increase in e-commerce sales across borders. This has resulted in the growth of international B2C shipments across the world. Besides e-commerce, the emerging trends of omnichannel retailing in certain countries and growth in trade driven by economic expansion are also some of the drivers of the CEP industry. And, according to data provided by Mordor Intelligence, the courier, express, and parcel (CEP) market is expected to be valued at more than USD 400 Billion by 2024 while expanding at a CAGR of 8-10% during the forecast period (2019-2024). SOS Limited (NYSE: SOS), YRC Worldwide Inc. (NASDAQ: YRCW), United Parcel Service, Inc. (NYSE: UPS), FedEx Corporation (NYSE: FDX), Air Transport Services Group, Inc. (NASDAQ: ATSG)
Now, in a time of a pandemic, CEP companies are playing a crucial role in helping maintain many business operations and the economy. Private-sector carriers such as United Parcel Service and FedEx are not capable of filling the demand for all manner of goods to be delivered to consumers, and many rely on mail-order pharmacies, too. This is where the Postal Service comes in. The United States government has decided to cut the budget of the agency, however, and among the specifics regarding the new instructions provided by the Federal Government are major changes to operations, such as leaving mail at delivery centers if it might delay carriers, ending extra and late trips (which help ensure all mail moves swiftly) and limiting parking points where carriers park their vehicles and walk to make deliveries. Critics claim these measures will delay the mail and hurt competitiveness.
SOS Limited (NYSE: SOS) just announced breaking news that, "it has acquired its insurance brokerage qualifications in China through the acquisition of Inner Mongolia Post Insurance Agency Co., Ltd. In March 2020, SOS Information Technology Co., Ltd. ("SOS"), the Company's wholly owned subsidiary, entered into an agreement with China Post Group Corporation ("China Post"), the state-owned enterprise operating the official postal service of China, to acquire 100% of the equity interests of Inner Mongolia Post Insurance Agency Co., Ltd., an indirect subsidiary of China Post. Thereafter, Inner Mongolia Post Insurance Agency Co., Ltd. became a wholly owned subsidiary of SOS and was officially renamed as Inner Mongolia SOS Insurance Agency Co., Ltd.
Inner Mongolia SOS Insurance Agency Co., Ltd. ("Inner Mongolia SOS") is licensed to conduct the sale of insurance products and to collect insurance premiums within the administrative jurisdiction of the Inner Mongolia Autonomous Region through its 12 branches in Inner Mongolia Autonomous Region. The insurance industry is highly regulated by the China Insurance Regulatory Commission, an agency authorized by the State Council of China to regulate the insurance products and services market and maintaining legal and stable operations of the insurance industry in China. The entry threshold for private enterprises in the insurance industry is extremely high due to governmental regulations, and therefore the acquisition of Inner Mongolia SOS has brought strong business opportunities to SOS through its insurance brokerage qualifications in Inner Mongolia. At present, the insurance business data for the first quarter of 2019 released by the official website of Inner Mongolia Banking and Insurance Regulatory Bureau is approximately RMB30 billion (approximately US$4.338 billion). Based on this data, it is estimated that the overall insurance premium market of Inner Mongolia Autonomous Region in 2019 was approximately RMB100 billion (approximately US$14.46 billion). Generally, around 30% of the insurance premiums are collectible as handling fees, which is estimated to be approximately RMB 30 billion for 2019 (approximately US$ 4.338 billion).
Management believes that through the addition of the insurance agency business, the operations of SOS will be further developed, and will bring the Company closer to its goal of building an international and efficient rescue service system.
About SOS Limited - SOS Limited, through its operating subsidiary, SOS Information Technology Co., Ltd. ("SOS") is a high-technology company providing a wide range of services to its corporate and individual members, including marketing data, technology and solutions for emergency rescue services. SOS is focused on the research and development of big data, cloud computing, Internet of Things, blockchain and artificial intelligence. We have created a SOS cloud emergency rescue service software as a service (SaaS) platform with three major product categories, including basic cloud (medical rescue card, car rescue card, financial rescue card, mutual assistance rescue card), cooperative cloud (information rescue center, intelligent big data, intelligent software and hardware), and information cloud (News Today, E-Commerce Today). This system provide marketing-related data, technology solutions, and technology-driven big data to clients such as insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers and other service providers in the emergency rescue services industry. SOS has obtained a national high-tech enterprise certification, the title of "big data star enterprise" awarded by Gui'an New District Government, and has registered 11 software copyrights and 2 patents. For more information, please visit: http://www.sosyun.com/"
YRC Worldwide Inc. (NASDAQ: YRCW) is a holding company of a portfolio which includes companies including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company HNRY Logistics. Earlier last week the Company announced Holland has been awarded two 2020 Logistics Management Quest for Quality Awards in the Expedited Motor Carriers and South/South Central Regional LTL Carriers categories. Each year, the Logistics Management Quest for Quality polls subscribers to rate transportation and logistics service providers in performance, value, information technology, customer service and equipment & operations. "We are honored Logistics Management and its subscribers have recognized Holland's commitment to serving and providing value for our customers," said Jason Bergman, YRCW Chief Customer Officer and President of HNRY Logistics. "Across YRC Worldwide companies, we take pride in our 30,000+ employees' dedication to exceeding customers' expectations."
United Parcel Service, Inc. (NYSE: UPS) and CVS Health Corporation announced back in April UPS subsidiary UPS Flight Forward (UPSFF) will use drones to deliver prescription medicines from a CVS pharmacy to The Villages, Florida for the largest U.S. retirement community, home to more than 135,000 residents. The service will use Matternet's M2 drone system. Drone transport offers a fast delivery option for medicines that are time-sensitive, while supporting social-distancing efforts. Drone delivery options provide individuals with a convenient alternative to visiting a pharmacy. This program can also help prioritize the protection of our healthcare heroes. "Our new drone delivery service will help CVS provide safe and efficient deliveries of medicines to this large retirement community, enabling residents to receive medications without leaving their homes," said Scott Price, UPS chief strategy and transformation officer. "UPS is committed to playing its part in fighting the spread of Coronavirus, and this is another way we can support our healthcare customers and individuals with innovative solutions."
FedEx Corporation (NYSE: FDX) reported back in June is providing essential supply chain services to support the fight against COVID-19. FedEx is supplying Medline personal protective equipment (PPE) from a FedEx Logistics facility located in the Panama Pacifico Free Trade Zone and Panama, to hospitals in South America, Central America and the Caribbean. Medline is a manufacturer and distributor of medical supplies and clinical programs. To date, over 850,200 face masks have been shipped to hospitals throughout the region with help from FedEx Express, the world's largest express transportation company. "FedEx Logistics is helping to protect front-line workers at hospitals throughout Latin America at this critical time," said Jeff Euler, vice president of the Americas, FedEx Logistics. "We are honored to serve these brave men and women and to be an essential part of the global response to the COVID-19 pandemic."
Air Transport Services Group, Inc. (NASDAQ: ATSG) through its subsidiaries, operates in the airfreight and logistics industry. The company owns and leases cargo aircraft to airlines and other customers. It also provides airline operations to delivery companies, airlines, e-commerce operators, freight forwarders, and the U.S. Military, as well as operates charter agreements. Back in July the Company reported that it deployed a Boeing 767-300 converted freighter in June in support of the DHL Express network in Asia under the terms of a stand-alone ACMI agreement with DHL-Bahrain. This agreement is to provide capacity support for general express freight and delivery of COVID-19 related relief supplies to Sydney, Australia. ATSG subsidiary Air Transport International (ATI) is operating the flights from Hong Kong to Sydney via Guam. An additional Boeing 767 has been deployed under a separate ACMI agreement between DHL Express and ATSG to serve routes from Chicago O'Hare Airport (US) to Cologne Bonn Airport (Germany) via East Midlands Airport (England). ATSG subsidiary ABX Air is operating this route to provide DHL additional capacity to meet the high level of service expected within its network. The freighters are leased from ATSG subsidiary Cargo Aircraft Management (CAM) and bring ATSG's support of DHL's network to sixteen Boeing 767 aircraft.
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